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1 4 maturity government spot rate swap spread 2.20% 0.30% 2 2.60% 0.35% 3 3.10% 0.42% 3.40% 0.70% based on the quotes above you decide
1 4 maturity government spot rate swap spread 2.20% 0.30% 2 2.60% 0.35% 3 3.10% 0.42% 3.40% 0.70% based on the quotes above you decide to buy a 4 year zero coupon corporate bond and then sell it after two years. (use the swap rate to approximate corporate yeilds)what would be the total return on investment be at the end of two years? (rememeber to convert to annual rate)
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